ORIGINAL RESEARCH
Evaluating Adoption of Information
Communication Technology in Agricultural Green
Production to Increase Net Returns
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College of Economics and Management, Northwest A&F University, Yangling, 712100, Shaanxi, China
Submission date: 2020-12-14
Final revision date: 2021-02-25
Acceptance date: 2021-03-17
Online publication date: 2021-10-12
Publication date: 2021-12-02
Corresponding author
Qian Lu
College of Economics and Management, Northwest A&F University, Yangling, China
Pol. J. Environ. Stud. 2021;30(6):5723-5738
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ABSTRACT
At present, the use of chemical fertilizers and pesticides in China is significantly higher than the
world’s average level, and it has caused many environmental problems. How to promote the reduction
of chemical fertilizers and pesticides while increasing the income of farmers has always been the
focus of government and scholars. A full understanding of the reasons leading to this phenomenon
is of great significance to better respond to and promote the green and sustainable development of
modern agriculture in China. Based on theoretical analysis and survey data of 1989 farmers in typical
vegetable growing areas of Shandong, Hebei and Shaanxi provinces, this study examined the impact
of farmers use of information communication technology on their net income and its mechanism. The
study found that keeping other conditions unchanged, the farmers in the benchmark regression results
have a significant and positive relationship in the degree of farmers using information communication
technology in production, sales and the net income. After the use of instrumental variables to control
the endogenous problem, for every standard deviation that farmers use information communication
technology in production and sales doubles, the net income of farmers may increase by 0.517 times the
standard deviation. Using the Karlson, Holm and Breen method to analyze the mechanism, the results
showed that the use of information communication technology by farmers would lead to technological
progress and supply decision adjustments by choosing green production behaviors, thereby increasing
net income. Further decomposition finds that these indirect effects can explain 13.8% of the increase
in net income of farmers using information communication technology and the contribution rates
are 56.30% and 15.42% respectively. This paper verifies the green income-increasing effect of the
application of information technology at the farm level and has strong policy implications for how to
guide farmers through scientific fertilization and information to reduce the use of chemical fertilizers and to solve the problem of non-point source pollution caused by excessive fertilizer application and to
promote sustainable agricultural development.